Hotels in the UK - Industry Market Research Report

Losing guests: Consumers are tightening their purse strings amid the cost-of-living crisis, harming revenue

UK hotels enjoyed solid occupancy rates as the weak pound following the Brexit vote made the UK an affordable destination for international tourists. At the same time, together with subdued consumer confidence, the weaker pound discouraged UK families from going on pricey holidays abroad, instead favouring staycations. Hotels were not prepared for what was to follow, with COVID-19 restrictions decimating the industry. Industry revenue is expected to fall at a compound annual rate of 3.6% over the five years through 2022-23 to £19.1 billion, despite an estimated 14.7% growth in 2022-23.

The industry includes hotels that provide accommodation to UK residents and international guests. These establishments often also have other facilities, including restaurants, recreational areas, conference rooms and convention centres, and some offer laundry services and parking.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.